When is arbitration required in an employment case?

July 1, 2014 by Karen Hill | Filed Under: Law

Certain professions and some employment contracts require an arbitrator to resolve employee-employer problems. Arbitration can either be binding, which means that the parties agree to the decision of the arbitrator, or nonbinding, just like mediation.

People who work in certain professions, such as transit workers, may be required to enter binding arbitration due to a clause in their union contracts or on rare occasions when the president orders it. However, when this is the case, the arbitration involves the union representatives instead of the employee.